83R7462 JAM-D
By: Davis S.B. No. 1624
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of regional water banks by the Texas
Commission on Environmental Quality and the Texas Water Development
Board.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 11.177(b), Water Code, is amended to
read as follows:
(b) In determining what constitutes reasonable diligence or
a justified nonuse as used in Subsection (a)(2), the commission
shall give consideration to:
(1) whether sufficient water is available in the
source of supply to meet all or part of the appropriation during the
10-year period of nonuse;
(2) whether the nonuse is justified by the holder's
participation in the federal Conservation Reserve Program or a
similar governmental program as provided by Section 11.173(b)(1);
(3) whether the existing or proposed authorized
purpose and place of use are consistent with an approved regional
water plan as provided by Section 16.053;
(4) whether the permit, certified filing, or
certificate of adjudication has been deposited into the Texas Water
Bank as provided by Sections 15.7031 and 15.704 or a regional water
bank as provided by Sections 15.1004 and 15.1005 or whether it can
be shown that the water right or water available under the right is
currently being made available for purchase through private
marketing efforts; or
(5) whether the permit, certified filing, or
certificate of adjudication has been reserved to provide for
instream flows or bay and estuary inflows.
SECTION 2. Section 15.011(c), Water Code, is amended to
read as follows:
(c) The board may transfer money in the fund to:
(1) the water bank account to be used by the board for
administration and operation of the Texas Water Bank; or
(2) a regional water bank account to be used by the
commission for the administration and operation of a regional water
bank.
SECTION 3. Section 15.703(a), Water Code, is amended to
read as follows:
(a) The board may take all actions necessary to operate the
water bank and to facilitate the transfer of water rights from the
water bank for future beneficial use including but not limited to:
(1) negotiating a sale price and terms acceptable to
the depositor and purchaser;
(2) maintaining a registry of water bank deposits and
those water users in need of additional supplies;
(3) informing water users in need of additional supply
of water rights available in the bank;
(4) encouraging water right holders to implement water
conservation practices and deposit the right to use the conserved
water into the bank;
(5) establishing requirements for deposit of a water
right into the water bank including minimum terms for deposit;
(6) purchasing, holding, and transferring water or
water rights in its own name;
(7) [establishing regional water banks;
[(8)] acting as a clearinghouse for water marketing
information including water availability, pricing of water
transactions, environmental considerations, and potential buyers
and sellers of water rights;
(8) [(9)] preparing and publishing a manual on
structuring water transactions;
(9) [(10)] accepting and holding donations of water
rights to meet instream, water quality, fish and wildlife habitat,
or bay and estuary inflow needs;
(10) [(11)] entering into contracts with persons to
pay for feasibility studies or the preparation of plans and
specifications relating to water conservation efforts or to
estimate the amount of water that would be saved through
conservation efforts; and
(11) [(12)] other actions to facilitate water
transactions.
SECTION 4. Chapter 15, Water Code, is amended by adding
Subchapter S to read as follows:
SUBCHAPTER S. REGIONAL WATER BANKS
Sec. 15.1001. DEFINITIONS. In this subchapter:
(1) "Deposit" means the placement of a water right or
the right to use water in the water bank for transfer.
(2) "Depositor" means a person who deposits or has on
deposit a water right in the water bank or trust.
(3) "Person" includes but is not limited to any
individual, corporation, organization, government, or governmental
subdivision or agency, including the board, business trust, estate,
trust, partnership, association, and any other legal entity.
(4) "Transfer" means the conveyance of a water right
or the right to use water under a water right in any of the following
manners:
(A) the conveyance of legal title to a water
right; or
(B) a contract or option contract to allow use of
a water right.
(5) "Trust" means a regional water trust.
(6) "Water bank" or "bank" means a regional water bank
established under this subchapter.
(7) "Water right" means a right acquired or authorized
under the laws of this state to impound, divert, or use state water,
underground water, or water from any source to the extent
authorized by law.
Sec. 15.1002. CREATION OF REGIONAL WATER BANKS. (a) The
commission, in consultation with the board, shall establish a
regional water bank for all or a portion of:
(1) the Colorado River Basin;
(2) the Brazos River Basin;
(3) the Trinity River Basin; and
(4) other river basins or regions, as the commission
considers necessary.
(b) The commission shall administer the water banks to
facilitate water transactions to provide sources of adequate water
supplies for use during times of drought or water shortage in each
of the various river basins or regions.
Sec. 15.1003. BANK OPERATION; RULES. (a) The commission
may take all actions necessary to operate a water bank and to
facilitate the transfer of water rights from a water bank for future
beneficial use including but not limited to:
(1) negotiating a sale price and terms acceptable to
the depositor and purchaser;
(2) maintaining a registry of water bank deposits and
those water users in need of additional supplies;
(3) informing water users in need of additional supply
of water rights available in a bank;
(4) encouraging water right holders to implement water
conservation practices and deposit the right to use the conserved
water into a bank;
(5) establishing requirements for deposit of a water
right into a water bank including minimum terms for deposit;
(6) purchasing, holding, and transferring water or
water rights in its own name;
(7) acting as a clearinghouse for water marketing
information including water availability, pricing of water
transactions, environmental considerations, and potential buyers
and sellers of water rights;
(8) preparing and publishing a manual on structuring
water transactions;
(9) accepting and holding donations of water rights to
meet instream, water quality, fish and wildlife habitat, or bay and
estuary inflow needs;
(10) entering into contracts with persons to pay for
feasibility studies or the preparation of plans and specifications
relating to water conservation efforts or to estimate the amount of
water that would be saved through conservation efforts; and
(11) other actions to facilitate water transactions.
(b) The commission may adopt rules necessary for
implementation of water banks.
(c) The commission may contract with any person to achieve
the purposes of this subchapter.
Sec. 15.1004. TEXAS WATER TRUST. (a) A regional water
trust is established within each water bank established under this
chapter to hold water rights dedicated to environmental needs,
including instream flows, water quality, fish and wildlife habitat,
or bay and estuary inflows.
(b) The commission, in consultation with the Parks and
Wildlife Department and the board, shall adopt rules governing the
process for holding and transferring water rights.
(c) The dedication of any water rights placed in trust must
be reviewed and approved by the commission, in consultation with
the board and the Parks and Wildlife Department. In addition, the
Department of Agriculture may provide input to the commission, as
appropriate, during the review and approval process for dedication
of water rights.
(d) Water rights may be held in a trust for a term specified
by contractual agreement or in perpetuity.
Sec. 15.1005. TRANSFERS AND CONDITIONS. (a) A water right
may be deposited in a water bank for an initial term of up to 10
years, unless otherwise held in a trust as established under
Section 15.1004, during which time the water right is exempt from
cancellation by the commission under the terms of Subchapter E,
Chapter 11. A water right is exempt from cancellation under this
subsection only once even if it has been transferred or
redeposited.
(b) The commission may not bring a cancellation action under
Subchapter E, Chapter 11, for a 10-year period following commission
approval of any necessary actions relating to a water right which
has been transferred while on deposit in a water bank.
(c) A contract or option contract to allow use of a water
right under this subchapter:
(1) may include a requirement that the purchaser show
diligence in pursuing feasible and practicable alternative water
supplies; and
(2) does not vest any right in the purchaser beyond the
stated terms and conditions of the contract or option contract.
Sec. 15.1006. FEES. (a) The commission may charge a
transaction fee per transfer not to exceed one percent of the value
of the water or water right received into or transferred from a
water bank to cover expenses of the board in operating the water
bank.
(b) The board shall place the fees in the water bank account
of the water assistance fund where they shall be separately
accounted for and used, with interest, only for the administration
and operation of a water bank by the commission.
Sec. 15.1007. REPORTS. The commission and the board shall
provide ready access by the other agency through manual or computer
capabilities to all water rights permits, final water rights
decisions, applications, amendments, contracts, computerized
files, computer programs, and other information related to water
rights and to the operation of the water banks. The commission
shall provide the board with all notices of proposed water rights
actions.
Sec. 15.1008. REGIONAL WATER BANK ACCOUNT. (a) The water
bank account is created as a special account in the water assistance
fund and is composed of:
(1) money appropriated to the board or commission for
the program;
(2) fees collected by the board or commission under
this subchapter;
(3) money transferred to the account from the water
assistance fund in Section 15.011(c) of this code;
(4) grants, contracts, gifts, or other such funds that
the board or commission may receive relating to this subchapter;
(5) money received from the transfer of water or water
rights held in the commission's name in a bank; and
(6) interest earned on the investment of money in the
account.
(b) The money in the account may be used only for the
administration and operation of a water bank by the commission
under this subchapter.
Sec. 15.1009. OTHER TRANSFERS. This subchapter does not
prevent the sale or purchase of water or water rights by or through
persons or entities outside of a water bank to the extent allowed by
law.
SECTION 5. Not later than May 1, 2014, the Texas Commission
on Environmental Quality shall adopt rules necessary to implement
Subchapter S, Chapter 15, Water Code, as added by this Act.
SECTION 6. This Act takes effect September 1, 2013.